Will Fairholme’s Trim of Its Dominant JOE Stake Change St. Joe’s (JOE) Narrative?

• In its fourth-quarter 2025 N-PORT filing, Fairholme Fund reported that it trimmed its position in The St. Joe Co. by 104,100 shares while still holding the stock as its largest investment.
• This filing shows that St. Joe now represents about 87.04% of Fairholme Fund’s portfolio, underscoring how concentrated the fund’s exposure remains despite the reduction.
• We’ll examine how Fairholme’s partial reduction of this still-dominant holding may influence St. Joe’s investment narrative for shareholders.

Rare earth metals are the new gold rush. Find out which 29 stocks are leading the charge.

What Is St. Joe's Investment Narrative?

To own St. Joe, you have to be comfortable with a real estate business whose story is tied to consistent execution, disciplined capital allocation and a relatively rich earnings multiple. Recent results show healthy profitability and dividend growth, while buybacks have been a meaningful part of the return profile. Against that backdrop, Fairholme trimming its stake by 104,100 shares looks more like portfolio risk management than a change in St. Joe’s fundamentals, especially with the position still at about 87% of the fund. The key short term catalysts remain operational: sustaining earnings momentum, balancing debt with ongoing development, and maintaining investor confidence after a very strong one year total return. The bigger risk now is how a concentrated shareholder base might magnify sentiment swings if selling accelerates.

But there is a less obvious concentration risk here that investors should not ignore. St. Joe's shares have been on the rise but are still potentially undervalued by 19%. Find out what it's worth.

Exploring Other Perspectives

The Simply Wall St Community’s single fair value estimate of US$85.00 contrasts with the market’s recent strength and ongoing concentration risk. Readers can benefit from comparing that view with how dependent sentiment is on a few large holders.

Explore another fair value estimate on St. Joe - why the stock might be worth just $85.00!

Build Your Own St. Joe Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your St. Joe research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free St. Joe research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate St. Joe's overall financial health at a glance.

Interested In Other Possibilities?

Right now could be the best entry point. These picks are fresh from our daily scans. Don't delay:

• Find 52 companies with promising cash flow potential yet trading below their fair value.
• Uncover the next big thing with 24 elite penny stocks that balance risk and reward.
• Explore 22 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com